In This Article:
Telecommunications and cable service provider Liberty Broadband (NASDAQ:LBRDK) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, with sales up 8.6% year on year to $266 million. Its GAAP profit of $1.87 per share increased from $1.69 in the same quarter last year.
Is now the time to buy Liberty Broadband? Find out in our full research report.
Liberty Broadband (LBRDK) Q1 CY2025 Highlights:
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Revenue: $266 million vs analyst estimates of $248.1 million (8.6% year-on-year growth, 7.2% beat)
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Adjusted EBITDA: $96 million vs analyst estimates of $80.9 million (36.1% margin, 18.7% beat)
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Operating Margin: 16.2%, up from 11.4% in the same quarter last year
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Free Cash Flow Margin: 4.9%, up from 2.4% in the same quarter last year
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Market Capitalization: $13.36 billion
Company Overview
Operating across the United States, Liberty Broadband (NASDAQ:LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.
Sales Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $1.04 billion in revenue over the past 12 months, Liberty Broadband is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand.
As you can see below, Liberty Broadband’s 132% annualized revenue growth over the last five years was incredible. This shows it had high demand, a useful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Liberty Broadband’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 2.7% over the last two years was well below its five-year trend.
This quarter, Liberty Broadband reported year-on-year revenue growth of 8.6%, and its $266 million of revenue exceeded Wall Street’s estimates by 7.2%.
Looking ahead, sell-side analysts expect revenue to decline by 1.1% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will see some demand headwinds.
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